If a Foreign Entity Is Only a Shell Company for Carrying

question 10

Multiple Choice

If a foreign entity is only a shell company for carrying accounts that could be carried on the parent's books,

• A)the functional currency would generally be the parent's currency.
• B)the functional currency would generally be the local currency.
• C)there is no reason to hedge transaction exposure.
• D)none of the options

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Definitions:

Customer Relationship Management

Strategically tries to build lasting relationships with, and add value for, customers.

Information Technology

The use of computers, networks, and other electronic devices to store, process, and exchange data.

Operations Management

The area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Workflow

The sequence of processes through which a piece of work passes from initiation to completion.